Lots of people want to be their own boss, but not everyone wants to create and build a business idea from the ground up. For these individuals, investing in a franchise can be a great route into business ownership.
If you find the right opportunity and go into it with the right mindset, you can very quickly reap the benefits of your work and see a return on your investment. However, given the amount of options out there and the overload of information available both online and offline, aspiring franchisees can become jaded.
Here are some of the most common misconceptions about franchising:
Investing into a franchise is really expensive
Although some franchise opportunities can cost a lot to buy and set up, the price of entry can be significantly lower depending on the industry, the business model, the equipment required and the training available. Financial requirements will also vary depending upon whether the franchise is home based or requires you to rent premises.
Think about the long-term investment and explore the financing options available. Most banks will consider lending to a franchise as they consider it a safer route to entrepreneurship.
You have to have experience in running a business
Franchisees come from all walks of life and while some have a level of business experience others have none at all. We’re pleased to say that some of our most successful franchisees haven’t run a business in the past which shows that if you have the right attitude and training you can build a profitable business. The very concept of running a franchise is about following proven systems and processes and being trained to execute them. You just need to embrace the franchisor’s ways of operating and put in the work required.
Franchisors just want your money
You may think that franchisors will take on anyone who wants to join their network but just like you, they want to find the right fit. A good franchisor will be selective and will ensure that any potential franchise owners share their values Franchising means entering into a long-term relationship which is a two-way process.
Invest in a sector you’re passionate about
Passion for the sector will not automatically lead to success. You need to focus on investing in a business that will allow you to earn a living and you will enjoy doing. Think of the bigger picture. Our franchisees are in the domestic cleaning industry but they are not responsible for the cleaning, they are in charge of meeting clients and matching them to the right cleaner. They are passionate about helping people and delivering a high quality service. Investing into a franchise is a major life decision so it’s important to be honest with yourself about whether you will enjoy running both the back-end and the front-end of the business.
Are you really your own boss?
Franchisors provide you with the business model and the systems you need to set up your business but you are the one who is running and growing the business. You will need to follow systems designed by the franchisor but day-to-day decisions lay with you and ultimately, so does the success of your business.